BBRG: Trump Models U.S. Economy on Kansas. That’s a Mistake

Trump Models U.S. Economy on Kansas. That’s a Mistake
The better choice is one of his favorite whipping boys, California, which has a balanced budget, rapid growth and industries of the future.
Bloomberg, October 19, 2018

 

 

 

President Trump has attacked the idea of the Californication of America. He has inexplicably blamed California wildfires on regulations that prevented the use of water to put them out. He has complained repeatedly about its high taxes, calling them “way, way out of whack,” even as the Trump Organization got sweetheart deals from cities in the state. He has bemoaned the state’s environmental laws, despite their role in reducing pollution and raising auto efficiency standards. Indeed, Trump wants to end the state’s ability to maintain higher than Federal standards for automobiles (leading to this lawsuit by the state).

California is far from perfect, but you cannot deny the success of its economy. Ignoring this reality, Trump has instead embraced what we might call Kansasification of America. Taking a page out of the Governor Brownback playbook, under Trump we have put into place the same sorts of tax and regulatory incentives as Kansas did circa 2012.

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I originally published this at Bloomberg, October 19, 2018. All of my Bloomberg columns can be found here and here